Bitcoin has reached the lowest level as the cryptocurrency market is coming down below $1 trillion
September 8, 2022: -On Monday, Bitcoin traded for less than $19,000, hitting its lowest level since June after a global decline in stock markets and the U.S. dollar’s ongoing strength.
The value of the total cryptocurrency market also dropped below $1 trillion as digital coins across the board saw a sell-off.
Bitcoin traded near $18,746.50 at 07:46 a.m. ET, down more than 5%, according to CoinDesk. Ether has far outpaced bitcoin’s gains in recent months and is down 9% at $1,513.64.
Central banks around the world live battling rampant inflation with tightening monetary policy. The U.S. Federal Reserve has undertaken a series of interest rate hikes tallying 2.25 percentage points. Markets are expecting further good rate climbs.
Policy tightening by the Fed has intensified the U.S. dollar, which has weighed on risk assets. The 10-year U.S. Treasury yield has also surged.
Bitcoin has traded in correlation to stocks, and so if they fall, in general, does the cryptocurrency.
“The macro environment also proves difficult with the dollar continuing to put highs. This affects all risk assets as we can see,” Vijay Ayyar, vice president of corporate growth and global at crypto exchange Luno, told CNBC.
“If we see the dollar start to move back down, then we should be able to get risk assets such as bitcoin move back up again.”
The crypto market has been battered this year, with nearly $2 trillion wiped off its value since its peak in November. Bitcoin is almost 60% off its record high of $68,990.90 that was hit in November.
A tough environment has caused the sell-off for risk assets and crypto-specific issues, which include collapsed projects and bankruptcies that have spread across the industry.
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